- The average American new car buyer paid $49,766 last month, dipping the figure below September’s $50,080 record
- The drop comes due mainly to slower sales of electric cars since a government incentive ended
The average American new car buyer paid $49,766 in October, down from $50,080 in September, according to Kelley Blue Book data. But cars aren’t getting any less expensive.
The dip came mostly because sales of expensive electric vehicles (EVs) dropped off dramatically after a $7,500 federal tax credit ended in September.
Some manufacturers have found ways to extend the credit themselves, but the effort wasn’t enough to prevent a sales drop.
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Incentives – those discounts dealers and manufacturers advertise to lure you in the showroom door – declined during the month. The average incentive was equal to 6.5% of the final sale price in October, down from 7.3% in September.
Truck Prices Set Record
- The average full-size truck sold for $66,462 – a record
Truck shoppers kept the figure higher during the month. The average full-size truck shopper paid a record $66,462 in October. That figure includes an 8.4% discount from the manufacturer’s suggested retail price.
Full-size trucks are the third most popular type of vehicle in America, after compact and midsize SUVs.
Luxury Brands Seeing Big Price Increases
- Luxury brands saw some of the most dramatic price increases, in part because of their reliance on EV sales
Cadillac and Porsche have seen some of the biggest price gains in the past year. Cadillac, a brand focused on a robust EV strategy and selling a strong mix of high-end Escalade SUVs, has seen its average transaction price jump more than 22% year over year.
At Porsche, a heavy importer facing steep tariff costs, final prices in October were up more than 13%. Lincoln and Chevrolet also saw annual prices increase significantly above the industry average, while Acura, Jeep, and Tesla saw transactions notably lower compared to year-ago levels.
EV Sales Crater, as Expected
- Electric car sales fell off dramatically, but analysts expected as much
EV sales fell an astonishing 48.9% from September.
Stephanie Valdez Streaty, senior analyst with Kelley Blue Book parent company Cox Automotive, says that’s no surprise.
“We expected this shift in the electric vehicle market,” she explains, as many shoppers who might otherwise have bought an EV later in the year rushed to buy while they could still qualify for the discount.
With the rebate, prices are high. In October, she says, the average EV sold for $59,125, which is “$9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.”
